MANILA - The Aquino administration added nearly a tenth to the national government's outstanding debt last year.
According to the Bureau of Treasury, the government's debt stock rose 9.8 percent to P5.437 trillion in 2012 from the P4.951 trillion the previous year.
This debt is usually settled by new financing, but ultimately the taxpayer foots the bill. Given a population of 92.34 million, each Filipino then is in hock for P58,880.22.
The increase was brought about largely by a 20.7 percent jump in the government's borrowings from the domestic market. Debt owed to local creditors rose to P3.468 trillion last year from P2.873 trillion in 2011.
Foreign obligations fell 5.3 percent to P1.969 trillion from the previous year's P2.078 trillion.
As a result, 64 percent of the government's debt is owed to local creditors, leaving 36 percent with foreigners.
The debt represents the accumulation of borrowings made through the years, as the government makes up for tax collection shortfalls just so it can push through with programmed expenditures, including infrastructure and other capital outlays, personnel compensation, as well as maintenance and other operating expenses.
The annual revenue shortfall gives rise to the budget deficit, which the government finances through borrowings.
The Department of Finance earlier said the government likely ended 2012 with a budget deficit of P235.3 billion, which is lower than the P279 billion ceiling for the period.
source: interaksyon.com